Sanjūsan Financial Group

Basic Information

Stock Code
7322
Industry
Banking
Category Detail
Banks
Prefecture
Mie Prefecture
Establishment Year
April 2018
Listing Year
April 2018
Official Website
https://www.33fg.co.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
Cresco, Iyogin Holdings, Shizuoka Financial Group, Kyoto Financial Group, Mebuki Financial Group, Toyama First Bank, Concordia Financial Group, Hirogin Holdings, Jūroku Financial Group, Chiba Bank, Gunma Bank, Akita Bank, Fukuoka Financial Group, Hachijuni Bank, Ogaki Kyoritsu Bank, Nanto Bank, Hyakugo Bank, The 114 Bank, Oita Bank, The Bank of Nagoya

Overview

Sanjūsan Financial Group is a Mie Prefecture-based bank holding company established in 2018, leveraging regional close-knit financial services and operational efficiency from business integration as strengths of a mid-tier regional bank group.

Current Situation

Sanjūsan Financial Group recorded consolidated net profit of approximately 4.1 billion yen in the fiscal year ending March 2020, with total assets reaching about 3.9 trillion yen. Centered on its main subsidiary Sanjūsan Bank, it conducts banking operations targeting local SMEs and individuals, with deposits on the scale of about 3.5 trillion yen. Established in 2018 through the business integration of Mie Bank and the Third Bank, the two banks merged in 2021 to unify under Sanjūsan Bank. Aiming to contribute to the regional economy and provide stable funding, the group also expands related businesses such as cards and leasing. The medium-term management plan emphasizes digitalization and operational efficiency, focusing on strengthening locally rooted services. It pursues strategies to stabilize its capital base and expand its customer base while addressing the harsh competitive environment for regional banks.

Trivia

Interesting Facts

  • Company name expresses the integration of Mie Bank (Mi, three) and Third Bank (San, three).
  • Rare financial holding company that listed simultaneously on TSE and Nagoya Stock Exchange upon 2018 business integration.
  • No. 2 deposit-holding regional bank group in Mie Prefecture.
  • Head office located in Yokkaichi City and Matsusaka City, pursuing locally rooted management.
  • Has diverse financial-related subsidiaries including leasing, cards, and credit guarantees.
  • Achieves efficient governance through single holding company operations.
  • Banks from the 2021 business integration were absorbed and merged to unify under Sanjūsan Bank.
  • Highly evaluated for unique services specialized in regional economic support.
  • Possesses stable financial base while basing in provincial cities.
  • Strong ties with local companies and municipalities, contributing to regional economic revitalization.
  • High transparency as an Audit and Supervisory Committee company.
  • Model case of locally rooted finance differing from nationwide major city banks.
  • Offers wide range of financial products targeting diverse customer segments.
  • Significantly contributes to funding for regional SMEs.
  • Fine-tuned services leveraging regional characteristics as a strength.

Hidden Connections

  • The business integration of Mie Bank and Third Bank garnered attention as a model for regional bank restructuring.
  • Actively collaborates with local governments to provide funding for regional revitalization measures.
  • Multiple trust banks listed as major shareholders, with notable trust account holdings.
  • Card company under Sanjūsan Bank serves as core for regional cashless promotion.
  • Leasing subsidiary becoming key funding source for local SME equipment investments.
  • Strong long-term relationships in corporate lending with local manufacturing and services.
  • Locally rooted management stance greatly contributes to local economic circulation.
  • System integration and efficiency from business merger serve as advanced examples for other regional banks.

Future Outlook

Growth Drivers

  • Increasing needs for local revitalization and regional economic activation
  • Steady demand for SME funding
  • Customer base expansion through expanded digital financial services
  • Rising demand for sustainable management and ESG compliance
  • Strengthened revenue base through diversification including leasing and cards
  • Improved convenience of financial services for local residents
  • New business development through strengthened ties with local government and companies
  • Establishment of efficient management amid population decline
  • Business efficiency through digital transformation
  • Improvement of medium- to long-term credit and brand value
  • Establishment as a comprehensive financial services provider

Strategic Goals

  • Support sustainable regional economic growth and strengthen collaboration with local companies
  • Diversify customer touchpoints through digital channel expansion
  • Achieve over 90% regional customer satisfaction
  • Expand lineup of sustainable financial products
  • Strengthen profitability through cost efficiency improvements
  • Reinforce role as regional financial infrastructure
  • Advance CSR/ESG management and promote information disclosure
  • Enhance SME support with comprehensive services
  • Active contributions to regional society and build trust
  • Maximize business integration effects and deepen group synergies

Business Segments

Corporate Lending

Overview
Provides comprehensive funding and management support to local SMEs and businesses.
Competitiveness
Trusted local relationships and rapid review processes
Customers
  • SMEs
  • Local mid-sized companies
  • Local chambers of commerce
  • Agricultural corporations
  • Manufacturing
  • Services
  • Construction
  • Retail
  • Logistics
  • Medical corporations
Products
  • Working capital financing
  • Equipment financing
  • Real estate collateral lending
  • Guaranteed financing
  • Consulting
  • Cash flow support
  • Business revitalization support
  • Credit guarantees
  • Leasing finance
  • Forward exchange contracts

Leasing Services

Overview
Offers flexible leasing contracts across diverse industries to support equipment investments.
Competitiveness
Broad industry coverage and locally rooted services
Customers
  • Manufacturing
  • Services
  • Transportation
  • Retail
  • Medical institutions
  • Educational institutions
  • Municipalities
  • Construction
  • Agricultural corporations
  • Information and communications
Products
  • Equipment leasing
  • Vehicle leasing
  • IT equipment leasing
  • Medical equipment leasing
  • OA equipment leasing

Card Payment Services

Overview
Provides diverse payment methods and services to the local customer base.
Competitiveness
Enhanced regional collaboration and comprehensive customer support
Customers
  • Individual customers
  • Small retailers
  • Leisure facilities
  • Restaurants
  • Service providers
  • Regional organizations
  • Schools
  • Medical institutions
  • Public facilities
Products
  • Credit cards
  • Debit cards
  • Prepaid cards
  • Points programs
  • Cashless payments

Credit Guarantee Operations

Overview
Conducts guarantee operations to support local SME financing and credit enhancement.
Competitiveness
Guarantee evaluation expertise rooted in the regional economy
Customers
  • SMEs
  • Founders
  • Agricultural and fishing corporations
  • Local governments
  • Financial institutions
  • Business associations
Products
  • Loan guarantees
  • Guaranteed loan schemes
  • Debt guarantees
  • Receivables purchase guarantees

Computer Services

Overview
Provides IT infrastructure and system development for the Sanjūsan Group and local customers.
Competitiveness
Customization capabilities tailored to regional characteristics
Customers
  • Group financial institutions
  • Local SMEs
  • Public organizations
Products
  • Financial systems
  • Data processing services
  • Data center operations
  • Network services

Business Support

Overview
Offers various support services to companies sustaining the regional economy.
Competitiveness
Flexible responses reflecting regional needs
Customers
  • SMEs
  • Municipalities
  • Financial institutions
Products
  • Administrative outsourcing
  • Human resources support
  • Consulting
  • Outsourcing

Competitive Advantage

Strengths

  • Strong customer base rooted in the region
  • Efficient operations from business integration
  • High trust with local companies
  • Diversified financial services
  • Management stability and sound asset composition
  • Abundant regional information and creditworthiness
  • Flexible business processes and rapid responses
  • Deep understanding of the regional economy
  • Stable funding capabilities
  • Securing excellent local talent
  • Strengthened IT infrastructure and digitalization push
  • Group expansion of diverse related businesses
  • Collaborative framework with local government
  • Governance as an Audit and Supervisory Committee company
  • Sustainable management foundation

Competitive Advantages

  • Credit as the No. 2 deposit-holding regional bank in Mie Prefecture
  • Synergies from the merger of Mie Bank and Third Bank
  • Fine-tuned services specialized in regional economic support
  • Comprehensive provision of diverse lending products and guarantee services
  • Diversified business model including leasing and cards
  • Optimal allocation of management resources through efficient holding company operations
  • Deep partnerships with local SMEs
  • Stable funding and risk management as a regional bank
  • High customer loyalty from locally rooted sales strategies
  • Enhanced reliability through robust governance
  • Strengthened hybrid online-offline sales channels
  • Improved brand image through social contributions to the local community
  • Enhanced internal controls and compliance framework
  • Stabilized revenue base through business diversification
  • Sustained cost reduction effects from business integration

Threats

  • Intensifying competition across the regional banking sector
  • Profit pressure from prolonged low interest rates
  • Shrinking customer base due to population decline and aging
  • Delays in responding to digital financial services
  • Emergence of credit risks and rising non-performing loans
  • Risks from regional economic fluctuations
  • Increased administrative costs from stricter regulations
  • Competition from emerging fintech companies
  • Regional economic deterioration from natural disasters
  • Stagnant loan growth due to declining funding demand
  • Changes in revenue structure from policy stock reductions
  • Needs for color control and brand maintenance burdens

Innovations

2023: Enhanced Digital Banking Functions

Overview
Revamped smartphone app and internet banking to improve convenience.
Impact
20% increase in users, improved customer satisfaction

2022: Completion of System Integration from Business Merger Effects

Overview
Integrated IT infrastructure of Mie Bank and Third Bank to promote efficiency.
Impact
10% reduction in operating costs, significant business efficiency improvements

2021: Introduction of Online Loan Application System for Local Businesses

Overview
Provided non-face-to-face, simple loan application environment for corporate customers.
Impact
15% increase in applications, shortened review periods

2024: Development of Environmentally Considerate Financial Products

Overview
Introduced green loans to promote environmental investments.
Impact
Strengthened support for sustainable regional economies

2020: Launch of Enhanced Local Business Consulting Program

Overview
Expanded financial and management support services for SMEs.
Impact
Improved management recovery rate for client companies

2023: Introduction of AI-Utilizing Risk Management System

Overview
Leveraged AI technology for borrower credit analysis to strengthen credit management.
Impact
Contributed to lower loan loss ratios

2022: Launch of Mobile Payment Linkage Services

Overview
Collaborated with local stores to promote cashless payments.
Impact
Contributed to regional economic revitalization

2020: Expansion of Leasing Product Lineup

Overview
Launched new equipment leasing plans for SMEs.
Impact
Increased contracts leading to sales growth

Sustainability

  • Collaborative activities with regional environmental protection groups
  • In-house energy-saving initiatives and CO2 reduction plans
  • Strengthened locally rooted social contribution programs
  • Development of financial products supporting local companies' environmental improvements
  • Establishment of governance for sustainable management
  • Promotion of women's empowerment and diversity respect
  • Strict privacy protection for customer information
  • Establishment and ongoing support for local disaster relief funds
  • Promotion of ESG information disclosure
  • Paper resource reduction campaign through business efficiency
  • Active participation in support activities for local elderly
  • Ongoing support for regional sports and cultural activities